by Donald Wood
Last updated: 9:50 AM ET, Tue May 2, 2023
Marriott International, Inc. announced its first-quarter results
and raised the full-year profit forecast for 2023 as travel demand continues to
increase and international tourism rebounds.
The hotel giant reported a steady uptick in bookings at
properties around the world despite fear of an economic slowdown and high
inflation slowing consumer spending.
Officials from Marriott revealed that first-quarter comparable
systemwide RevPAR increased 34.3 percent worldwide, 25.6 percent in the United
States and Canada, and 63.1 percent in international markets.
“We are off to a great start in 2023,” Marriott CEO Anthony
Capuano said. “First quarter worldwide RevPAR1 grew 34 percent year over year,
with meaningful gains in both occupancy and average daily rate.”
“International markets were particularly robust, with RevPAR
growth of 63 percent,” Capuano continued. “The lifting of travel restrictions
throughout Asia Pacific, particularly in Greater China, significantly boosted
first quarter demand in the region.”
Reported net income in the first quarter totaled $757
million, compared to $377 million last year, and adjusted net income totaled
$648 million. Adjusted EBITDA also totaled $1.09 billion, an increase from the $759
million recorded during the same period in 2022.
During the first quarter, Marriott added around 11,000 rooms
globally, including roughly 5,800 rooms in international markets and more than
2,700 conversion rooms. The company’s development pipeline totaled more than
3,050 properties and approximately 502,000 rooms to start 2023, including more
than 21,000 rooms approved.
“In the U.S. & Canada, we saw solid demand across the
leisure and group segments in the quarter, while business transient demand
continued to improve,” Capuano said. “ADR in the region rose 10 percent year
over year, aided by higher special corporate negotiated rates and 15 percent
growth in group ADR.”
On Monday, Marriott announced it would enter the affordable
midscale segment with the launch of its 31st brand, City
Express by Marriott, following its acquisition of the City Express brand portfolio
from Hoteles City Express.
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